USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- Immediate support at $1.3493, with further levels at $1.3467 and $1.3442.

- Immediate resistance at $1.3572, followed by $1.3601 and $1.3635.

- RSI at 39 suggests bearish momentum with possible further downside before a reversal.

The USD/CAD pair is currently trading at $1.35105, down 0.19%, as the U.S. dollar weakens against the Canadian dollar during the early trading hours.

The price has slipped below its 50-day Exponential Moving Average (EMA) of $1.3561, signaling growing bearish momentum in the short term.

Immediate support is found at $1.3493, a key level that, if broken, could lead to further downside towards $1.3467 and $1.3442.

On the upside, the pair faces immediate resistance at $1.3572, which aligns with the pivot point at $1.3544. A sustained break above this could challenge higher resistance levels at $1.3601 and $1.3635, though the current downtrend suggests selling pressure may persist.

The Relative Strength Index (RSI) stands at 39, indicating the pair is approaching oversold territory but has room for further declines before a significant reversal.

Traders are watching for a potential sell-off below the $1.35298 level, with a take-profit target set at $1.34758.

Overall, the technical setup favors bearish sentiment, especially with the price trading below the 50 EMA and the RSI leaning towards oversold. If support at $1.3493 gives way, a sharper decline could be triggered.

In conclusion, USD/CAD presents a bearish outlook below $1.35298, with a potential downside target of $1.34758 and stop-loss at $1.35619.

USD/CAD - Trade Ideas

Entry Price – Sell Below 1.35298

Take Profit – 1.34758

Stop Loss – 1.35619

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$540/ -$321

Profit & Loss Per Mini Lot = +$54/ -$32